1.FIND the bank discount and proceeds on the following loans
i) RM4000 FOR 3 MONTHS at 10 1/2 percent
ii) RM4215 FROM 10 june to 5 august of the same year at 10 percent
To find the bank discount and proceeds on the given loans, you need to use the formula for bank discount:
Bank Discount = Principal * Rate * Time
Proceeds = Principal - Bank Discount
Let's calculate the bank discount and proceeds for each loan:
i) RM4000 for 3 months at 10 1/2 percent:
Step 1: Convert the interest rate to a decimal:
10 1/2 percent = 10.5/100 = 0.105
Step 2: Calculate the bank discount:
Bank Discount = RM4000 * 0.105 * (3/12)
Bank Discount = RM4000 * 0.105 * 0.25
Bank Discount = RM4000 * 0.02625
Bank Discount = RM105
Step 3: Calculate the proceeds:
Proceeds = Principal - Bank Discount
Proceeds = RM4000 - RM105
Proceeds = RM3895
Therefore, the bank discount is RM105, and the proceeds are RM3895.
ii) RM4215 from 10 June to 5 August of the same year at 10 percent:
Step 1: Convert the interest rate to a decimal:
10 percent = 10/100 = 0.10
Step 2: Calculate the bank discount:
Bank Discount = RM4215 * 0.10 * (57/365) (Since there are 57 days between June 10th and August 5th)
Step 3: Calculate the proceeds:
Proceeds = Principal - Bank Discount
Proceeds = RM4215 - Bank Discount
To get the exact value of the bank discount and proceeds, please provide the exact number of days between June 10th and August 5th.